Washington, D.C. – U.S. President Donald Trump has initiated large-scale military strikes against Yemen’s Iran-backed Houthi rebels in response to their attacks on Red Sea shipping. The airstrikes, launched on March 15, 2025, resulted in at least 31 civilian deaths and 101 injuries, marking the beginning of what is expected to be an extended military campaign.
Trump’s Warning to the Houthis
Announcing the military action, President Trump declared a resolute stance against the Houthis, issuing a stern four-word warning: “Hell will rain down.”
“Today, I have ordered the United States Military to launch decisive and powerful action against the Houthi terrorists in Yemen,” Trump wrote in a statement on Truth Social, posted just before 2:30 p.m. EDT.
According to Yemen’s Houthi-run Health Ministry, the airstrikes caused significant civilian casualties. The operation represents Trump’s most important military action of his second term, coming just two months into his presidency.
Justifying the strikes, Trump stated, “They have waged an unrelenting campaign of piracy, violence, and terrorism against American, and other, ships, aircraft, and drones.”
In an unambiguous message to the Houthis, he added: “Your time is up, and your attacks must stop, starting today. If they don’t, hell will rain down upon you like nothing you have ever seen before!”
The president also warned Iran—widely recognized as the Houthis’ primary backer—that continued support for the group would not be tolerated. “If Iran threatens the United States, America will hold you fully accountable, and we won’t be nice about it,” he stated.
Houthi Attacks on Maritime Trade and Global Economic Impact
Initially believed to be a regional conflict, the ongoing attacks by Yemen-based Houthi militias on cargo ships in the Red Sea have escalated into a crisis with serious global economic implications. Since November 2023, the Houthis have been targeting commercial vessels, claiming their actions are in solidarity with Gazan Palestinians.
Due to the two major chokepoints of the Red Sea, this crisis has already had a profound impact on global trade, including India’s trade with Europe and the U.S. Rising security concerns have forced 95% of vessels to reroute around the Cape of Good Hope, adding an additional 4,000 to 5,000 nautical miles and delaying shipments by 15 to 20 days. This extended route has significantly increased freight costs, leading to higher consumer prices and major disruptions in supply chains.
Why is the Red Sea So Important for Global Trade?
The Houthis control strategic positions around the Bab al-Mandeb Strait, one of the two key chokepoints in the Red Sea. By blocking access to this waterway, they threaten to disrupt a major global trade artery.
The Red Sea is a 2,000-km-long maritime corridor connecting Europe and Asia, linking the Mediterranean Sea to the Indian Ocean. More than $1 trillion worth of trade passes through this region every year, including 7-10% of the world’s oil and 8% of global liquefied natural gas (LNG) shipments.
If the Bab al-Mandeb Strait is fully blocked, ships will be forced to bypass the Suez Canal, adding 8,900 km and two extra weeks to their journey, further escalating costs and logistical challenges.
Macroeconomic Consequences of the Red Sea Conflict
As of March 2025, the Red Sea conflict continues to disrupt global shipping routes, leading to significant economic repercussions. Between January and February 2025, vessel transits through the Bab el-Mandeb Strait and the Suez Canal declined by 11% and 21%, respectively. This downturn has severely impacted Egypt’s Suez Canal revenues, which have fallen by over 60% compared to 2023, resulting in nearly $7 billion in lost income.
The Baltic Dry Index, monitoring global shipping costs for bulk commodities, has surged by approximately 67% since the beginning of 2025. Conversely, Drewry’s World Container Index, reflecting container shipping rates, decreased by 7% as of March 13, 2025, settling at $2,368 per 40-foot container; this rate remains 67% higher than the pre-pandemic average of $1,420 in 2019. These developments underscore the ongoing challenges faced by global shipping and trade due to the conflict in the Red Sea region.
Impact on Indian Business
India, heavily reliant on Red Sea trade routes, has faced severe disruptions. Exporters have begun delaying shipments, with estimates suggesting a potential $30 billion loss in export earnings for FY2024.
Shipping routes to Europe and the U.S. have become longer, leading to a 20-30% rise in freight costs for Indian goods. Key sectors affected include:
- Leather, Plastics, and Spices: Kanpur alone exports ₹300 crore worth of goods to Europe every month. However, consignments worth ₹100 crore are currently stalled.
- Basmati Rice: India exported ₹38,524 crore worth of Basmati rice in FY23. With the crisis, freight costs for Indian rice shipments have surged from $600 per container to $2,000 per container.
Freightos.com, a cargo booking and payment platform, reports that shipping costs for a 40-foot container from Asia to northern Europe have surged by 173% to exceed $4,000. Likewise, shipments to North America’s East Coast now cost $3,900 per container, reflecting a 55% increase.
Even though global carrier companies are expanding fleet capacity, the economic strain caused by the Red Sea crisis is expected to persist in the short to medium term.
Houthi Response and Renewed Threats
The U.S. strikes came just one day after the Houthis announced their intent to resume attacks on Israeli ships in the region. The group declared a renewed ban on Israeli vessels passing through the Red Sea, citing Israel’s restrictions on aid shipments to Gaza as justification.
“Any Israeli ship attempting to violate this ban shall be targeted in the declared zone of operations,” the Houthis stated, referring to the Arabian Sea, Bab al-Mandeb Strait, and the Gulf of Aden.
U.S. Military Action and Global Security
Following the Houthi announcement, Trump swiftly authorized the airstrikes, describing them as necessary to safeguard international trade and American interests.
“Our brave warfighters are carrying out aerial attacks on the terrorists’ bases, leaders, and missile defenses to protect American shipping, air, and naval assets, and to restore navigational freedom,” Trump wrote.
“No terrorist force will stop American commercial and naval vessels from freely sailing the waterways of the world,” he added.
As global tensions escalate, the world watches closely to see whether Trump’s military response will effectively deter further Houthi aggression or lead to a broader regional conflict.
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